Agefi Luxembourg - janvier 2026

Janvier 2026 7 AGEFI Luxembourg Économie / Banques S ecuritization is transitioning from a specialized financing technique into a mainstream pillar of Europe’s capital markets. In 2025, structural trends — shifting poli- cy priorities, regulatory reform, market innovation, and the rise of new asset classes—are converging to elevate securitization’s role in chan- neling savings into produc- tive investment. Germany illustrates this dynamic: despite high savings rates, households favour deposits over investments, leaving the economy heavily dependent on bank lending— around 80%, comparedwith just 20% in the U.S. Looking ahead to 2026, continued reform and market development are set to increase its competitive- ness versus alternative funding tools and deepen investor participation. Luxembourg, with its clear, yet flexible legal framework and cross-border expertise, remains central to this evolution and is poised to capture a larger share of German and pan-European flows. FromCMU to SIU& Securitization as underused tool The policy focus has broadened from the Capital Markets Union (CMU) to the Savings and Investment Union (SIU); a shift that underscores the urgency of mobilizing household savings for long-term, productive investment. This is not mere rebranding. SIU accents retail participa- tion, pension modernization, and efficient inter- mediation, acknowledging that Europe’s chal- lenge is less about capital scarcity and more about capital allocation. Securitization can free up bank balance sheets, diversify funding sources and tailor risk-return profiles for institutional and, increasingly, semi- professional investors. By transforming pools of loans or receivables into investable securities, originators unlock capital for new lending while investors gain exposure to granular, risk-man- aged asset pools. Regulatory Reform: Simplification, Clarity, and Competitiveness The European Commission’s proposals to amend the Securitization Regulation aim to strike a better balance between prudential soundness and mar- ket dynamism. The direction of travel should be simplification, predictability, and comparability without compromising resilience. While initial reactions to the European Commis- sion’s proposals were positive, a closer look re- vealed significant caveats and potential drawbacks for certain asset classes and national markets, particularly in Germany. Key elements of the reform include: 1. Principle-Based SRT Framework Significant Risk Transfer (SRT) is central to capital relief for banks. Moving from rigid mechanical tests to principle-based self-assessment and stress testing, coupled with streamlined supervisory approvals, should reduce uncertainty anddecision timelines, supporting both synthetic and cash SRT. 2. Reduced Compliance Burden Simplified reporting templates (with materially fewer mandatory fields) cut operational costs and friction. Simplified due diligence for institutional investors when EU-supervised entities are involved, and waivers where public bodies or development banks guarantee the first-loss tranche, ensure compliance requirements remain proportionate to risk mitigants. 3. Public vs. Private Securitization Clarified Transactions listed on trading venues even with- out a prospectus will now fall under “public secu- ritization,” aligning disclosure obligations and increasing transparency disclosures. 4.CapitalandLiquidityCalibrations(CRR&LCR) Amendments to the Capital Requirements Regulation (CRR) will introduce more risk-sensi- tive floors for senior positions and recalibrate Liquidity Coverage Ratio (LCR) rules, making securitization more competitive relative to other funding tools. Stakeholders anticipate meaningful refinements during the legislative process, which formally began inmid-December 2025 when the European Parliament’s ECON Committee Rapporteur pub- lished two draft reports. One addressing proposed amendments to the Securitization Regulation and the other to the CRR. The CRR draft signals a clear push toward reduced capital requirements across all categories, aiming to enhance competitiveness and funding flexibility for banks. In contrast, the Securitization Regulation draft introduces far fewer changes, leaving several previously identified obstacles unresolved. Industry sentiment remains unequivocal: revital- izing the European securitization market is criti- cal. Market participants expect additional revi- sions during the legislative process and trilogue negotiations, with finalization targeted for mid- 2026. The comingmonths will be pivotal in deter- mining whether Europe can unlock securitiza- tion’s full potential as a cornerstone of its financial architecture. Market Dynamics: What’s Moving Now Beyond regulatory reform, the European securiti- zation market is undergoing a period of dynamic change, driven by evolving investor behavior, technological innovation, and the emergence of new asset classes that are reshaping issuance pat- terns and risk management practices. 1. SRT Europe’s SRT segment has scaled notably in recent years. Clearer guidance has fostered a repeat- issuance culture among banks, while the investor base has broadened beyond large banks to include insurers and asset managers. Growth is expected to continue across synthetic and cash SRT, sup- ported by better approval certainty andmore stan- dardized risk analytics. 2. Technology and Data Tokenization and DLT promise faster settlement, auditability, and interoperability of structured finance products. Meanwhile,AI-driven riskmod- eling enhances pool selection, performance fore- casting, anomaly detection, and surveillance. The practical hurdle is standardization, harmonized data fields, validated models, and interoperable platforms that supervisors and investors trust. 3. Asset Class Evolution Beyond traditional applications such as auto loans, mortgages, consumer finance, securitization expanded in 2025 into the following emerging and strategic areas: - Short-term receivables (trade, invoice finance) are gaining still momentum among SMEs and mid-caps seeking flexible liquidity with 100% bank lending in a securitization vehicle (SV). - Fintech consumer assets ( Buy Now, Pay Later platforms) increasingly adopt securitization to scale funding, contingent on transparent under- writing, collection practices, and loss mitigation. - Infrastructure-linked assets particularly data centers and solar (plus storage) align structurally with securitization’s capacity to package long- duration cash flows for yield-seeking investors. Luxembourg in Practice: Building a Scalable Platform Luxembourg continues to consolidate its position as a leading domicile for European securitization. End 2025, the country hosted over 1,600 active securitization vehicles and more than 6,000 com- partments, reflecting its depth, versatility, and trusted infrastructure. For sponsors targeting German or broader European issuance, Luxembourg offers a repeat- able, scalable operating model: 1. Vehicle and Compartment Set-Up: Establish a securitization vehiclewith compartments for each asset pool or strategy, segregating risks and cater- ing to diverse investor mandates. 2. Tax Neutrality: Efficient cross-border structur- ing without double taxation enhances the juris- diction’s appeal to international sponsors and investors. 3. Innovation Readiness: Early integration of green and sustainable finance, digital assets, and fintech-enabled products within securitization structures. 4. Technology Integration: Where appropriate, adopt DLT/tokenized issuances for operational gainswhile ensuring regulatory compatibility and investor readiness. The Germany-Luxembourg SecuritizationAxis This appeal is particularly evident in the strong cross-border partnership between Germany and Luxembourg. Luxembourg’s flexible legal frame- work and cross-border expertise have made it the domicile of choice for many German originators seeking to ac- cess pan-European capital markets. By establishing securitization vehicles in Luxembourg, German sponsors benefit from oper- ational scalability, tax neu- trality, and regulatory clarity. This Germany-Luxembourg axis has become a model for efficient cross-border securiti- zation, enablingGerman issuers to tap into a broader investor base while maintaining robust risk segregation and compliance standards. LookingAhead: 2026 as an Inflection Point As reforms progress andmarket practicesmature, securitization’s comparative edge strengthens. Coupled with Europe’s investment imperatives, from digital infrastructure to energy transition, and other strategic capabilities, securitization is well-positioned to bridge the allocation gap between household savings and productive assets. In general, the following trends are expected to be observed in 2026: 1. Securitization as key pillar of Asset-Backed Finance (ABF): Securitization represents a key pil- lar within the broader evolution of ABF, a trend reshaping capital markets by leveraging real- world assets to unlock liquidity. Looking ahead, ABF is poised to expand beyond conventional sec- tors like consumer loans andmortgages into areas such as renewable energy projects, trade finance, and even intellectual property. 2. Integration in Investment Structures: The inte- gration of securitizationwithin alternative invest- ment structures such as RAIFs (Reserved Alternative Investment Funds) or ELTIFs (European Long-Term Investment Funds) repre- sents a significant innovation in portfolio con- struction and capital efficiency. By embedding securitized assets into these vehicles, managers can offer investors exposure to diversified pools of loans, receivables, or other real-world assets while maintaining the regulatory and structural flexibility of alternative funds. 3. Digital Infrastructure and Technology-Driven Assets: The surge in AI, cloud computing, and data sovereignty is driving securitization of digi- tal infrastructure assets such as data centers and fiber networks. These assets, backed by long-term contracts and predictable cash flows, are increas- ingly attractive for structured finance solutions. 4. Green and ESG-Linked Securitization: Europe’s climate agenda is accelerating demand for sustainable finance solutions. Green securiti- zation will play a pivotal role in channeling household savings toward projects that support the energy transition, climate adaptation, and sus- tainable mobility. Enhanced ESG disclosure and taxonomy compliance will be critical to investor confidence. Conclusion In 2025, the momentum was clear: policy evolu- tion, regulatory recalibration, market innovation, and broadening investor participation are aligning to expand securitization’s impact. In 2026, with reforms expected to be finalized and operational- ized, Europe should see greater issuance velocity, more diversified asset pools, and deeper investor engagement. Alexander KASTENDEUCH, Partner, Banking & Capital Markets, German Markets Leader Patrick LOCH, Senior Manager, Banking & Capital Markets EY Luxembourg Securitization in Pan-Europe: Key drivers in 2025 and outlook for 2026